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Saturday, October 23, 2010

What does Nokia need to do to become relevant again?

Nokia is one of the world's biggest mobile phone makers, but it's falling behind Google, Apple and Research in Motion in the innovation stakes.
 Look all, I used to love Nokia and still do.

Here's the thing:
1.
Change leadership, ie. change the C-level leaders. Do a comparison with Motorola CEO, he made a come back (for now).

2. Change organization structures: perhaps they have too many layers, direction and things are set and done in timely manner. Time-to-market. Cut back all redundant org.

3. Keep low end phone: That's what big boys usually play, the massive game, 40-50million units onwards kind of game. This is said sometimes back by Steve Ballmer. But, low end phone would never secure them high margin, given the phone cost is $8-12. Well, Apple did lesser volume, but made the largest margin and profit in comparison to big boys' volume.

4. High end phone: Nokia smartphone ain't smart anymore.
- I typically hate the 'Option' menu button, I don't know why does it for any reason.
- Besides, I don't like 6-8 buttons on top of the keypad. Even LG latest touch phone has only 1 button.
- Nokia lagged for 1 year to come out touch screen phone while their competitors from Korea, made exciting touch screen phones.
- Nokia doesn't innovate. What is so big deal from E71 to E72? I call that, revision or improvement. It is the same goes with their 'i' naming. They segmented their phones in too many layers, giving too many options and loose the steam to be focused, giving to the right clients with the right phone.

5. Phone software(smartphone): 
- They are slow, not responsive, not intuitive, not user friendly
- OVI: Why iTunes music download spoke louder than Nokia theater on every American Idol show? I don't get it.
- Someone from there has to take a dummy(like Jeff Hawkins), and starts to figure out how each software flow to be done, in the simplest way, in the least steps, cool and awesome - to get a task done.
- Step back, competitor OS platform allows for multiple types of apps running on it. Yes, it may be just 1 task at a time(multi-tasking coming), but it's a computer like platform. That's what makes consumer excited, that they can add more apps, upgrade OS. Palm was the pioneer, then MS Pocket PC; now all are replaced by iPhone OS, Android, and more to come...
- Meego, Moblin - too many headlines on these; but no relevance to us anyhow, today - simple means no impact.

6. Processor 
- Everyone is going to use 1GHz. It seems marriage between Intel and Nokia, is not working out after a long time as compared to Apple's investment for making A4 - which is just a repacking technology. Smartphones need more processing power at low power.
- Samsung would be a great candidate to do well in long run in this business since they manufacture everything from AMOLED, LCD, RAM, ROM, microprocessor, screws and nuts(just kidding), and now working hard on Bada. Not even Sony Eric. can come close to Samsung as Sony always depend on their vendor making their phones.

7. Focus 
Droid, was a single focus to come back. RIM brought us business tool via their Blackberry. Consumers don't want to be confused with so many models, E, C, X, N, S, whatever series out there. They have to focus, 'Connecting People'.

8. Contents 
I think, this you all can write. Note, Sony has all contents in the world, you name it.

9. Nokia US 
It is a total failure there. They closed their concept stores. Their phones are the cheapest in that country as compared to elsewhere. Their selection at operators are the lowest while being cannibalized by Samsung. American either wants Smartphone or cheap phone; no mid phone.

This is just my opinion, correct me if I'm wrong.

Note, I still like Nokia, I still like Intel; they got to innovate. I refuse to pay a phone/tool with revision; neither will I use a tool that doesn't listen to my comfort and need. I need a phone, well connected and get everything into the palm of my hand.

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